we will also focus on some areas of high tech defense exports to russia that we don't think are appropriate to be exporting in this kind of climate. >> reporter: the united states and europe will not levy financial penalties against russia's energy banking and defense industries unless moscow decides to invade ukraine, something mr. obama conceded might happen if this new round of economic sanctions prove as few futile for the first. >> the new mayor is injured. >> reporter: eight military observers were taken prisoner by pro-russian separatists outside of slavyanask on friday. yesterday they were paraded before the media. >> this colonel appeared tense and unhappy. >> we have no indication when we will be sent home. >> reporter: they said they were being treated well but it was impossible to tell if they were under duress. there was no need to guess how these men were being treated. they're captured ukrainian soldiers also being held by militants and also shown off to journalists yesterday. the new self-appointed mayor of slavyanask claims the european observers are spies. he told us he wa